LAGOS TOPS THE STATE PERFORMANCE INDEX

By:Tajudeen Aminat
Lagos State has been ranked Nigeria’s best-performing sub-national government in the 2025 State Performance Index (pSPI), outperforming all 36 states and the Federal Capital Territory (FCT) across key governance and economic indicators.
The ranking, published by Phillips Consulting Limited (pcl.), a leading business and management consulting firm, places Lagos first in the Overall pSPI Ranking, reflecting its strong performance in governance, revenue generation, economic development, and public service delivery.
According to the report, Lagos emerged as the country’s top revenue-generating state, ranking first in Internally Generated Revenue (IGR) per capita, per square kilometre, and per trade route. The state also secured second place in internet penetration and digital access.
The report highlighted Lagos’ financial strength, noting that 69 per cent of the state’s revenue is derived from internally generated sources, far above the national average of 18 per cent. This significantly reduces its dependence on federal allocations and underscores its fiscal sustainability.
Phillips Consulting described the pSPI as a framework for assessing governance effectiveness and identifying areas requiring policy attention. It noted that the 2025 edition adopts a more data-driven methodology, placing greater emphasis on measurable outcomes and tangible impact rather than perception-based assessments.
Commenting on Lagos’ performance, the report described the state as Nigeria’s economic powerhouse, with a Gross Domestic Product (GDP) larger than that of several African countries. It attributed Lagos’ economic strength to its vibrant commercial activities, financial services sector, technology ecosystem, international trade links, and strategic port infrastructure.
The report further noted that Lagos remains largely self-sustaining financially, generating most of its revenue internally while benefiting from a robust informal economy and a dominant position in the nation’s financial sector.
In the overall ranking, Ogun State placed second, followed by Kaduna, Adamawa, and Niger States. Nasarawa and Gombe occupied the sixth and seventh positions, while Jigawa, Plateau, and Abia completed the top ten.
Reacting to the report, Governor Babajide Sanwo-Olu said the recognition validates the efforts of his administration and aligns with other recent assessments that have ranked Lagos ahead of other states in key development indicators.
He said the ranking serves as motivation for the government to intensify its efforts in delivering improved outcomes for residents. The governor cited Lagos’ recent recognition as one of Africa’s leading nightlife destinations, its ranking as the world’s fastest-growing tech ecosystem by Dealroom.com, and its emergence as Nigeria’s top-performing state in the Presidential Enabling Business Environment Council (PEBEC) Ease of Doing Business rankings.
Sanwo-Olu reaffirmed his administration’s commitment to building a greater Lagos, pledging to continue implementing policies and programmes aimed at improving the quality of life for residents and strengthening the state’s position as Nigeria’s foremost investment destination.
